Viceroy had been granted exclusive use of Berbice loading basin in 1990
- Hinds
Stabroek News
May 29, 2002
Prime Minister Sam Hinds says that in granting Viceroy Shipping Ltd exclusive rights to the loading basin in the Berbice River, he was continuing an arrangement entered into with the company since 1990. The agreement, signed by then PNC deputy Prime Minister, Haslyn Parris, was to subsist for a period of ten years.
The PPP/Civic government has come in for criticism over the exclusive use of the mooring basin by Viceroy. Community leaders and workers at Kwakwani have argued that exclusive use by Viceroy has resulted in the Berbice Mining Enterprise (Bermine) losing crucial sales. Hinds has argued that Bermine's problems have more to do with falling production and he also pointed out that exclusive use of the basin does not preclude other shipping companies from using the facility.
The Prime Minister asserted in a letter to Stabroek News that the Parris agreement assigning the mooring basin to Viceroy was a sound one as was his decision to continue and extend it as the "people of Guyana were deprived of nothing, rather those arrangements were to the overall benefit of the people and country."
The Parris agreement provided that "Viceroy Shipping Ltd (the Transshipment and Ocean Carrier) subject to its dredging the loading pit and its approaches to the channel, will be given the exclusive use of the said loading pit for a period of ten (10) years from the first transshipment of bauxite from Aroaima (Bauxite Company) to the Ocean carrier".
It also provided for Viceroy to be given suitable mooring facilities either in the form of piles or a system of anchors. Viceroy was also given permission to put down floating buoys, markers, lights and similar navigational aids to be suitably placed in the river.
Critics of the Prime Minister's decision to extend exclusive use contend that he did so despite advice to the contrary from the Bauxite Industry Development Company (BIDCO), the holding company for the state-owned bauxite operations.
That advice pointed out that "the granting to Viceroy Shipping Limited, Transshipment Operator and Ocean Carrier for ABC exclusive use of the Basin, Mooring System and Turning Circle is relevant in the context of Viceroy maintaining a permanent transshipment service (e.g. a moored transshipment vessel) and (guaranteeing) a reasonable and timely transshipment service to all bauxite ships requiring such service out of Guyana, as is the case until now.
Under this arrangement, Viceroy does not have a monopoly on ocean freight for the larger cargoes out of Guyana - customers having the option to utilize other carriers to move their product, as Alcan and other CIS customers have done over the years, utilizing the Viceroy transshipment facility for which a fee is charged. If such a service would no longer be guaranteed by Viceroy after the removal of the transfer vessel, "M/V Bulk VENTURER" by March 2002, as is being indicated, exclusivity could confer on Viceroy a monopoly on the larger bauxite shipment out of Guyana by them not allowing non-Viceroy ships capable of loading themselves, to enter and moor at the Load Basin: a situation that could be detrimental to bauxite sales to customers who, for freight and other advantages, prefer to use their own ships or charter ships from other carriers."
The memo also reminded the Prime Minister that it was indicated to him at a previous meeting that it was the company's understanding "that Viceroy has already started exercising the monopoly power inherent in exclusivity in their negotiations for shipment of Bermine tonnage" which Alcoa has sold to Russia.
BIDCO suggested to the Prime Minister "that there should be a clear provision under this paragraph that if Viceroy does not maintain a permanent facility in the basin non-Viceroy ships would be allowed to enter, moor, and load themselves at the Loading Basin, subject, of course, to the appropriate advance notices being given and the agreed user/transshipment fees charged as is currently done."
The company also suggested that Viceroy be required to pay user fees and other charges when transporting bauxite for companies other than Aroaima.
The Prime Minister on advice from Winston Brassington, Head of the Privatisation Unit, amended the Parris agreement to give to Viceroy Shipping "exclusive use of the Basin, Mooring System, Turning Circle and JP Knight is given the exclusive use of the Barge Staging Area for the calendar year 2002 and, if ABC exercises its option for the calendar year 2003 for that year as well."
He also approved the amendment which states "the Mooring System, the Turning Circle, the Basin and the transshipping of cargo therein have been established as required by the Government since 1996 and may continue in use during the calendar year 2002, and if ABC exercises its option for the calendar year 2003, for that year as well, subject to the appropriate maintenance of the Mooring System by Viceroy Shipping Limited."
The Prime Minister also approved the amendment, exempting Viceroy from paying any user fees or other charges for its ships in the Berbice River.